SentinelOne stock climbed after the cybersecurity firm reported second quarter earnings and revenue that topped Wall Street estimates. Guidance met expectations amid views it may gain from rival CrowdStrike Holdings' recent setback.
Meanwhile, SentinelOne reported financial results after the market close on Tuesday.
The company reported July-ended quarter SentinelOne earnings after the market close. SentinelOne said it earned 1 cent on an adjusted basis vs. an 8-cent loss a year earlier. It marked the company's first quarter of positive adjusted net income and earnings.
The cybersecurity company posted revenue of $199 million, up 33%. SentinelOne stock analysts expected the Mountain View, Calif.-based company to report revenue of $197.3 million and break-even on earnings.
SentinelOne Stock: CrowdStrike Impact
Further, SentinelOne said annualized recurring revenue from subscription-based services increased 32% to $806 million, above estimates of $801.8 million.
For the current quarter ending in October, SentinelOne predicted revenue of $209.5 million, in line with estimates of $209.4 million.
On the stock market today, SentinelOne stock rose 2.2% to 25.29 in early trading.
In 2024, SentinelOne stock has retreated nearly 10%. However, SentinelOne stock rallied after the July 19 global IT outage involving a CrowdStrike software update.
"SentinelOne delivered a strong quarter, beating across all metrics and raising guidance for the rest of the year," said William Blair analyst Jonathan Ho in a report. "The quarter had no benefit from CrowdStrike's outage, and the company's guidance raise does not depend on significant conversion rates as deals can take 9 to 12 months to materialize."
Ho added: "We would expect the stock to open slightly higher based on the solid results, but there is no real clarity on what the CrowdStrike opportunity could mean. In our view, SentinelOne will likely see a modest benefit from CrowdStrike in terms of new business win rates and incremental customer lands, but we believe it is very difficult to quantify and perhaps too early to fully understand the implications. Many contracts are multiyear in nature and few customers are likely to drop the product immediately due to the outage."
SentinelOne Stock Technical Ratings
CrowdStrike earnings are due after the market close on Wednesday. Many analysts expect a full-year guidance cut from CrowdStrike.
SentinelOne's software detects malware on laptops, mobile phones and other "endpoints" that access corporate networks. Also, it's building a broad, threat-detection cybersecurity platform.
Also, SentinelOne rivals include Microsoft and Palo Alto Networks.
Meanwhile, SentinelOne stock owns a Relative Strength Rating of 85 out of a best-possible 99, according to IBD Stock checkup.
In April, the company lowered its full-year revenue outlook, spurring a sell-off.
Further, SentinelOne is among cybersecurity stocks to watch.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
